Frequently Asked Questions

Find answers to the most common questions about our loan products, process, and requirements.

What is True Equity Line?
True Equity Line is a licensed mortgage lender operating in all 50 states. We specialize in home equity financing โ€” including HELOCs, home equity loans, refinancing, purchase loans, VA and FHA loans โ€” helping American homeowners access the value in their properties with competitive rates, transparent terms, and expert guidance.
Is True Equity Line a legitimate and licensed lender?
Yes. True Equity Line is a fully licensed mortgage lender registered with the NMLS (Nationwide Multistate Licensing System). We operate in compliance with all federal and state lending laws, including RESPA, TILA, and the Equal Credit Opportunity Act. Our NMLS ID is displayed throughout the site and on all loan documents.
Which states does True Equity Line operate in?
True Equity Line is licensed to originate mortgage loans in all 50 U.S. states. Whether you're in California, Texas, Florida, New York, or anywhere in between, our team can assist you with your home financing needs.
How do I contact True Equity Line?
You can reach us by phone, email, or through our online contact form. Our team is available Monday through Friday, 8amโ€“8pm ET, and Saturday 9amโ€“4pm ET. You can also apply directly online โ€” 24 hours a day, 7 days a week โ€” and a loan officer will follow up on the next business day.
Does True Equity Line sell my personal information?
Absolutely not. True Equity Line never sells, rents, or trades your personal or financial information to third parties for marketing purposes. All data is protected with 256-bit SSL encryption and handled in accordance with our Privacy Policy and applicable federal and state privacy laws.
What is a HELOC and how does it work?
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. It works similarly to a credit card โ€” you have a maximum credit limit, you can borrow what you need, repay it, and borrow again during the draw period (typically 5โ€“10 years). After the draw period, you enter a repayment phase (10โ€“20 years) where you repay the outstanding balance with interest.
What is the minimum credit score required for a HELOC?
Most lenders, including True Equity Line, require a minimum credit score of 620 for a HELOC. However, borrowers with scores of 700 or higher typically qualify for the most competitive rates. We look at the complete financial picture, not just the score.
How much can I borrow with a HELOC?
The amount you can borrow depends on your home's value, your existing mortgage balance, and your lender's maximum loan-to-value (LTV) ratio. True Equity Line allows up to 85% combined LTV. For example: if your home is worth $400,000 and you owe $250,000 on your mortgage, you may be eligible for a HELOC of up to $90,000 (85% of $400,000 = $340,000 minus $250,000 = $90,000).
Is a HELOC rate fixed or variable?
HELOC rates are typically variable, meaning they fluctuate with the prime rate set by the Federal Reserve. This means your rate โ€” and your payment โ€” can change month to month. Some lenders offer options to lock a portion of your balance at a fixed rate. Ask your True Equity Line loan officer about rate lock options.
Can I use a HELOC for anything?
Yes โ€” there are no restrictions on how you use HELOC funds. Common uses include home renovations, debt consolidation, education expenses, medical bills, emergency funds, and business investments. Note that interest is only tax-deductible when funds are used to "buy, build, or substantially improve" the home securing the loan.
What happens to my HELOC if I sell my home?
If you sell your home while you have an outstanding HELOC balance, the HELOC must be paid off from the sale proceeds at closing, just like your primary mortgage. You cannot take a HELOC with you to a new property.
What types of home purchase loans does True Equity Line offer?
We offer a full range of home purchase loan products: Conventional loans (fixed and adjustable rate), FHA loans, VA loans, USDA loans, Jumbo loans, and various first-time homebuyer programs. Our loan officers will help you identify the best product based on your financial profile and goals.
How much of a down payment do I need to buy a home?
The minimum down payment depends on the loan type: Conventional loans start at 3%, FHA loans at 3.5% (with 580+ credit score), VA loans and USDA loans require $0 down for eligible borrowers, and Jumbo loans typically require 10โ€“20%. Putting less than 20% down on a conventional loan typically requires Private Mortgage Insurance (PMI).
What is a mortgage pre-approval and why do I need one?
A pre-approval is a formal assessment of your creditworthiness by a lender, resulting in a conditional commitment to lend up to a specified amount. It requires full documentation review (income, assets, credit). Pre-approval carries significantly more weight with sellers than pre-qualification and demonstrates you are a serious, qualified buyer in a competitive market.
How long does the home purchase process take?
From application to closing, most home purchase loans take 30โ€“45 days. This timeline includes loan processing, appraisal, title search, and underwriting review. True Equity Line's streamlined digital process can significantly reduce this timeline for well-prepared borrowers.
What is the difference between rate-and-term refinance and cash-out refinance?
A rate-and-term refinance replaces your existing mortgage with a new one at a different rate or term โ€” the goal is to reduce your monthly payment or pay off your loan faster without taking cash out. A cash-out refinance replaces your mortgage with a larger loan, and you receive the difference between the new loan amount and your current balance as cash.
When does refinancing make financial sense?
Refinancing typically makes sense when you can lower your interest rate by 0.5% or more, you plan to stay in the home long enough to recoup closing costs (the break-even point), you want to switch from an adjustable to a fixed rate for stability, or you want to access equity for major expenses. Our loan officers can calculate your specific break-even point and estimated savings.
What are the typical closing costs for a refinance?
Refinance closing costs typically range from 2โ€“5% of the loan amount and may include origination fees, appraisal fee ($400โ€“$600), title search and insurance, recording fees, and prepaid items (property taxes, homeowners insurance, prepaid interest). Some lenders, including True Equity Line, offer no-closing-cost refinance options where costs are rolled into the loan or covered by a slightly higher rate.
How soon can I refinance after buying a home?
There is generally no mandatory waiting period for conventional refinances after purchase, though most lenders require 6โ€“12 months of ownership. Cash-out refinances typically require 6โ€“12 months of seasoning. FHA streamline refinances require at least 210 days after closing and 6 on-time payments. VA IRRRLs require 210 days and 6 payments.
Will refinancing hurt my credit score?
Refinancing does involve a hard credit inquiry, which may temporarily lower your score by a few points (typically 2โ€“5 points). However, the impact is minimal and short-lived โ€” usually returning to normal within 3โ€“6 months. If you shop multiple lenders within a 14โ€“45 day window, multiple inquiries are typically counted as one for FICO scoring purposes.
Who is eligible for a VA loan?
VA loan eligibility is available to: veterans who served 90+ consecutive days during wartime or 181+ days during peacetime, current active-duty service members after 90 days of continuous service, National Guard and Reserve members with 6+ years of service, and surviving spouses of veterans who died in service or from a service-connected disability. You'll need a Certificate of Eligibility (COE) from the VA.
Can I use my VA loan benefit more than once?
Yes. Your VA loan benefit is a lifetime benefit that can be used multiple times. After paying off a VA loan (or selling the home and repaying the loan), your full entitlement is restored. You can also have two VA loans simultaneously in some circumstances, using your remaining entitlement.
What is the VA funding fee and who is exempt?
The VA funding fee is a one-time fee paid to the VA to sustain the loan program, typically ranging from 1.25% to 3.3% of the loan amount depending on down payment and prior use. Veterans with a VA service-connected disability rating of 10% or more, Purple Heart recipients, and surviving spouses of veterans who died in service are exempt from the funding fee.
Do VA loans have loan limits in 2025?
Since 2020, there are no VA loan limits for eligible veterans with full VA loan entitlement โ€” meaning you can borrow as much as a lender is willing to approve without a down payment. County loan limits only apply to veterans with reduced entitlement (those who still have an active VA loan on another property).
What is the FHA loan down payment requirement?
With a credit score of 580 or higher, FHA loans require a minimum down payment of 3.5%. If your credit score is between 500โ€“579, the minimum down payment is 10%. Scores below 500 do not qualify for FHA financing. Down payment funds can come from personal savings, gifts from family members, or approved down payment assistance programs.
How long does FHA mortgage insurance last?
FHA loans require mortgage insurance for the life of the loan if your down payment is less than 10%. If you put 10% or more down, FHA mortgage insurance drops off after 11 years. This is an important consideration vs. conventional loans, where PMI automatically cancels once you reach 20% equity. Many borrowers refinance into a conventional loan once they have 20% equity to eliminate MIP.
Can I use an FHA loan to buy an investment property?
No. FHA loans are for primary residences only. You must intend to occupy the home as your primary residence within 60 days of closing. FHA loans cannot be used for vacation homes or investment/rental properties.
What qualifies as a jumbo loan in 2025?
A jumbo loan is any mortgage that exceeds the conforming loan limits set by the FHFA. In 2025, the standard limit is $766,550 for a single-family home in most U.S. counties. In high-cost areas (such as Los Angeles, San Francisco, New York, and Honolulu), the limit is $1,149,825. Loans above these amounts are considered jumbo loans.
Can I get a jumbo loan with less than 20% down?
It is possible, though more difficult. Some specialized jumbo programs allow 10โ€“15% down for highly qualified borrowers (typically 740+ credit score, strong income, significant reserves). However, 20% down remains the standard requirement for most jumbo loans, and higher down payments typically secure better rates and terms.
Do jumbo loans have higher interest rates?
Jumbo loan rates have historically been 0.25โ€“0.5% higher than conforming rates, reflecting the additional risk lenders take on. However, in competitive markets, jumbo rates sometimes match or undercut conforming rates for well-qualified borrowers. True Equity Line offers competitive jumbo rates and encourages you to compare our quotes with other lenders.
How do I apply for a loan with True Equity Line?
You can apply entirely online through our secure application portal, 24 hours a day. The application takes approximately 8โ€“12 minutes to complete. You can also call us to apply over the phone with a loan officer or schedule an in-person consultation. After submission, a dedicated loan officer will contact you within 1 business day.
What documents do I need to apply for a mortgage?
Required documents typically include: government-issued photo ID (driver's license or passport), last 2 years of W-2s or 1099s, last 2 years of federal tax returns, most recent 30 days of pay stubs, most recent 2โ€“3 months of bank statements (all accounts), most recent mortgage statement (if applicable), homeowners insurance information, and for self-employed borrowers: business tax returns and a year-to-date profit & loss statement.
How long does loan approval take?
Pre-qualification: minutes to hours. Pre-approval: 1โ€“3 business days. Full underwriting approval: 3โ€“7 business days after complete documentation is submitted. Closing: 5โ€“15 business days after final approval. Total from application to closing: typically 15โ€“30 days for most loan types at True Equity Line, compared to the industry average of 45+ days.
Does applying affect my credit score?
Our initial pre-qualification process uses a soft credit inquiry, which does NOT affect your credit score. A hard inquiry is required for full pre-approval and underwriting, which may temporarily lower your score by 2โ€“5 points. If you apply with multiple lenders within a 14โ€“45 day window, FICO typically counts these as a single inquiry, so shopping around is smart.
Can I be denied after pre-approval?
While uncommon, denial after pre-approval can occur if your financial situation changes (job loss, new debt, major purchase), the property appraises below the purchase price, title issues are discovered, or documentation reveals inconsistencies. To protect your approval: don't change jobs, don't open new credit accounts, don't make large purchases, and maintain your financial profile until closing.
What is the debt-to-income (DTI) ratio and what does it need to be?
Your DTI ratio is the percentage of your gross monthly income that goes toward debt payments (including your proposed mortgage payment). Most conventional lenders want your total DTI below 43%, though some allow up to 50% with strong compensating factors. FHA allows up to 57% in some cases. VA and USDA are more flexible. A lower DTI generally means better loan terms.
How does True Equity Line determine my interest rate?
Your rate is based on several factors: your credit score, loan-to-value ratio (LTV), loan type and term, property type, occupancy (primary residence vs. investment), loan amount, and current market conditions. The best way to know your exact rate is to get pre-qualified โ€” it takes minutes and won't affect your credit score.
What are points and should I pay them?
Mortgage points (also called discount points) are upfront fees paid to permanently lower your interest rate โ€” one point equals 1% of the loan amount. Whether paying points makes sense depends on how long you plan to keep the loan. Calculate your break-even point: divide the upfront cost of the point by your monthly savings to find how many months it takes to recoup the cost.
What are the typical fees associated with a mortgage?
Mortgage fees vary by loan type but typically include: origination fee (0โ€“1% of loan amount), appraisal fee ($400โ€“$700), title search and insurance ($700โ€“$1,500), recording fees ($100โ€“$300), attorney fees (in some states), prepaid interest, property tax and insurance escrow, and credit report fee. True Equity Line provides a detailed Loan Estimate within 3 business days of your application, listing all fees transparently.
What is APR and how is it different from the interest rate?
The interest rate is the cost of borrowing the principal loan amount. The Annual Percentage Rate (APR) is broader โ€” it includes the interest rate plus lender fees and costs, expressed as an annual percentage. APR is typically slightly higher than the interest rate and gives you a more accurate picture of the true cost of the loan. Always compare APRs when shopping between lenders.
Can I lock my interest rate? How long does a rate lock last?
Yes. Once you're under contract on a property (or approved for a refinance), True Equity Line offers rate locks of 30, 45, 60, or 90 days. A rate lock protects you from market rate increases during the processing period. Longer locks may come with a slightly higher rate or a fee. If your loan doesn't close before the lock expires, a lock extension may be available (sometimes for a fee).
How do I create a client account?
Click "Register" in the navigation or visit trueequityline.com/client/register. You'll provide your name, email, phone, and create a password. After registration, we'll send a verification email โ€” click the link to activate your account. Once verified, you can log in to track applications, upload documents, and communicate with your loan officer.
What can I do in my client dashboard?
Your client dashboard allows you to: track the status of your loan applications in real-time, upload required documents securely, view messages and updates from your loan officer, check your application timeline, and manage your profile information. You'll receive email notifications whenever your application status changes.
How secure is my information on True Equity Line's website?
We take data security extremely seriously. All data transmission is protected with 256-bit SSL/TLS encryption โ€” the same standard used by major financial institutions. Our servers are hosted in secure, certified data centers. We conduct regular security audits, enforce strict access controls, and never store full Social Security Numbers. Your data is never sold or shared with advertisers.
What do I do if I forget my password?
Click "Forgot Password?" on the login page and enter your registered email address. We'll send a password reset link that expires in 1 hour. If you don't receive the email, check your spam folder or contact our support team at contact@trueequityline.com. For security, we'll never ask for your password via phone or email.
How do I know how much equity I have in my home?
Your home equity is the difference between your home's current market value and the total of all outstanding loans secured by the property (your mortgage, any second mortgages, or existing HELOCs). To estimate: Home Value โ€“ Outstanding Mortgage Balance = Equity. For an accurate figure, a professional appraisal is the most reliable method โ€” which is typically part of the loan application process.
Can I get a HELOC on a rental or investment property?
Yes, though it's more challenging than on a primary residence. Lenders typically require 25โ€“30% equity, a higher credit score (680+), and may charge a higher rate due to increased risk. Not all lenders offer HELOCs on investment properties. Contact a True Equity Line loan officer to discuss investment property equity options.
What happens to my HELOC if property values decline?
If your home's value drops significantly, your lender may reduce or freeze your HELOC credit line โ€” even if you've been making timely payments. This is legal under HELOC agreements and happened widely during the 2008 housing crisis. It's one reason experts recommend not depending entirely on a HELOC as your primary emergency fund.
How accurate is the True Equity Line mortgage calculator?
Our calculator provides an estimate based on the inputs you provide. Actual monthly payments will vary based on property taxes (which vary by county), homeowners insurance premiums, HOA fees (if applicable), Private Mortgage Insurance (if required), and your actual qualified interest rate. For a precise payment figure, get pre-qualified and receive a formal Loan Estimate.
Does the calculator account for taxes and insurance?
The basic calculator shows principal and interest only โ€” the two components we control as a lender. Your total monthly payment (PITI) will be higher once property taxes, homeowners insurance, and any PMI or HOA dues are added. When you apply, your Loan Estimate will include all estimated costs so you have a complete picture.
What is the Equal Housing Lender designation?
True Equity Line is an Equal Housing Lender. This means we are prohibited from and committed to never discriminating against any applicant on the basis of race, color, religion, national origin, sex, disability, familial status, age, or any other protected characteristic under applicable federal and state laws, including the Fair Housing Act and Equal Credit Opportunity Act.
What is RESPA and how does it protect me?
The Real Estate Settlement Procedures Act (RESPA) is a federal law that protects consumers during the home purchase and mortgage process. It requires lenders to provide you with a Loan Estimate within 3 business days of application (showing key loan terms and estimated closing costs) and a Closing Disclosure at least 3 business days before closing. It also prohibits kickbacks between settlement service providers.
What is the Right of Rescission?
For certain home-secured loans (including HELOCs and refinances on primary residences), federal law gives you a 3-business-day Right of Rescission after signing โ€” meaning you can cancel the loan without penalty and for any reason. This right does not apply to purchase mortgages. True Equity Line will inform you of this right at closing and provide the required notices.

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